In fry pan, add olive oil. When the temperature rises, add
diced onions, sauté them for a while till they turn nice and pink in
color. Now add ginger-garlic paste, green chilies, salt, coriander powder
and turmeric powder. (You can even use ginger and garlic pieces too.)

Sauté it for 3-4 minutes. After this add the diced tomatoes and
cook till the mixture leaves oil.

Bring this to room temperature. Now blend this mixture in a
blender until it forms a rich red puree. (Add little bit of water or milk
if necessary while grinding.)

Transfer this mixture in a pan and bring it to boil. Add yellow
butter, red chili powder, garam masala and fresh cream. (Add water if you
want to make a rich gravy paneer) Stir it occasionally for 5-6 minutes. Finally
add your diced pieces of paneer (cheese) and mix it thoroughly. (Don’t
cook too long after adding cheese otherwise they might turn hard).